ForexPros Daily Analysis April 28, 2011

Technical Overview:
EUR/USD set a fresh 5-month high earlier today after the historical press conference of the FOMC yesterday. From the fundamental point of view we think that the weakness of the USD is about to end. From the technical point of view we can see that the pair is way overbought.

On the Daily chart, the pair successfully reached the top band of the upward channel at 1.4883 before retreating 40 pips to its current level.

On the Hourly chart the pair reached the top band, which signals the end of the current short term bullish trend.
RSI is signaling a reversal.

At the current levels we are looking for a downward correction.
These short positions will be for a longer term than usual and with a wider TP.

Trading Idea:
SHORT positions can be taken anywhere between 1.483 and 1.488.
Take profit is between 1.466 and 1.47. Stop loss is at 1.494.
At the moment we are not looking for LONG positions at all.


Forex Trading analysis written by Dominic Bromley for Forexpros.


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